David Unsworth

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• Can someone please give advice on how to distribute equity over time? If you know someone is worth 25% overtime but want to make sure that they are still there in 3 months, 6 months and upon exit, how do you scale up equity over time? What are some typical check points?

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    I would start with establishing an options allocation based on market norms and then a market standard vesting schedule. i.e. options typically vest 25% after the first year and then the balance over the next three years monthly.

• What are the top three thrings that investors look at when analyzing your product/service? What are some hints for a first time invetor meeting?

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    What is their reason for being (The big problem they solve) What is their value prop? why would someone care about the product/service? How do they plan to go to market and win an unfair share? How strong is the team and can I get excited about working with them, What kind of growth and potential return can I get for my LPs

• David, I just checked out the list of Inc500 fastest growing private companies, and was surprised at how low some of the revenue numbers were for category leaders. As a director and investor, how do you counsel your founders on finding the balance between revenue and market-share growth?

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    I’m not sure I understand the question – please rephrase. By definition if you are generating increasing revenue (at a faster rate than the growth of the market) are you not increasing market share? What is the balance?

• How willing are you to invest in a company that is not just pre-revenue but pre-firm-concept of revenue? Would you ever consider investing in a great idea with a passionate founder in a big market?

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    It depends on what you are trying to accomplish and how big you think the opportunity is. I would expect you have some notion of how you intend to monetize??

• As an investor what are immediate red flags that deter you from investments?

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    Poor articulation of the problem being solved and poor demonstration of the size of the market.

• Are investors more likely to back a company with a mediocre idea that has an experienced group of founders, or hear a great idea from a company run by a few newbies?

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    It depends. I would tend to back an experienced team provided I am convinced that they can pivot and iterate their way out of an idea/market/approach if it turns out not to hold the promise they expect. I also like great ideas from less experienced people as long as they are open to exploring ways to add bench strength where needed as the company grows.

• The aerospace sector is so heavily regulated and manufacturing a reasonable product requires such a high capital cost. What is the most approachable way to enter the ring? A good/niche idea and good pitching skills?

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    I think you need to find some industry veterans for this question. You need valuable feedback and I just can’t give it on this sector beyond a “generic” yes to a good niche and pitching skills (which are almost always required)

• I want to send an invitation to VC/Angel investors and other tech startup people that i've spoken to in the past in hopes of getting feedback on my new online service. I'm not sure how something like that would be received if I've only spoken to some of them 1 or 2 times. What would you do if someone you only spoke to a few times (that you may not remember) sends you an invite for feedback?

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    That’s tough, I generally read the first line and see if there is something there that jogs my memory. You have to at least provide a tag line as part of the invite that gets attention.

• How far a long does my company need to be before I approach an investor?

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    This may be a contrarian view. If you can get a warm introduction I always think it is a good idea to meet early for advice/thoughts before you return to actually pitch your investment. It really depends on the VC firm you are dealing with.

• Is it possible to find funding for a project/idea even if I'm from another country?

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    Can you clarify? Are you new to Canada or are you and your business located in another country?